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Owners corporations

Owners corporations must maintain common areas. The corporation’s powers may be delegated to a manager or chair or secretary. It may lease or licence parts of the common property. Prospective buyers must receive owners corporation certificates. Two-lot subdivisions are exempt from many of the requirements. The subdivision plan decides the boundaries for who pays for repairs. Implied easements restrict what owners may add to the building. Reinstatement and replacement insurance is required for shared services. Annual general meetings must not be more than 15 months apart and matters to cover are set by law. Un-financial lot owners are ineligible to vote. Power of attorney can only be held by a family member of a lot owner. The dispute resolution provisions of the Owners Corporations Act 2006 (Vic) are complex. Complainants may seek conciliation or mediation from Consumer Affairs Victoria. VCAT may determine disputes.

Owners corporations
Contributors

Norman Mermelstein

REIV Accredited Owners Corporation Specialist

Neville Sanders

REIV Accredited Owners Corporation Specialist

Duties and rights of lot owners and occupiers

Last updated

1 July 2021

A lot owner must comply with the:

  • Owners Corporations Act 2006 (Vic) (‘OC Act’);
  • Owners Corporations Regulations 2018 (Vic) (‘OC Regulations’); and
  • rules of the owners corporation (s 128 OC Act).

A lot owner must give notice to the owners corporation of any application by the lot owner for a building permit or planning permit or the certification of a plan of subdivision affecting the lot (s 133 OC Act), however consent of the owners corporation is not required. The period of notice is not specified.

Under section 134 of the OC Act, both a lot owner who sells and a person who acquires a lot must advise the owners corporation within one month of completion of the contract.

A lot owner who does not occupy the lot or who will be absent for more than three months must provide the lot owners mailing address for service of notices (s 136 OC Act). The lot owner not in occupation of the lot must give a copy of the rules of the owners corporation to the occupier of the lot (s 136).

An occupier of a lot must comply with the OC Act, OC Regulations and rules of the owners corporation and must not use or neglect the common property (s 137 OC Act), but there is no provision that the lot owner reveals particulars of the occupier to the owners corporation.

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